The Johnston Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Martin Flack, the company controller, is responsible for prepanng the master budget and has accumulated the following information for 2022. g {Click the icon to View the information] Johnston has an employee labour contract that calls for a wage increase to $14.00 per hour on April 1, 2022. New labour-saving machinery has been installed and will be fully operational by March 1I 2022. The controller has been informed that the company expects to have 19,000 frames on hand at December 31, 2021 . and has a policy of carrying an end-ofmonth inventory of 100% of the following month's sales plus 50% of the second following month's sales. uired Information 2022 January February March April May Estimated sales in units 12,000 14,000 8,000 11,000 11,000 Selling price 5 55.00 5 51.00 5 51.00 5 51.00 5 51.00 Direct manufacturing labour-h ours per unit 3.5 3.5 2.5 2.5 2.5 1ll'tl'age per direct manufacturing labour- hour 5 12.00 5 12.00 5 12.00 5 14.00 5 14.00 Direct manufacturing labourrelated costs include pension contributions of 50.60 per hour. llll'orltersI compensation insurance of 50.15 per hourI employee medical insurance of 50.30 per hour. and employment insurance. in addition to wages. Assume that as of January 1I 2022. the employment insurance rates are 15% of wages for employers and 155": of wages for employees. The cost of employee benets paid by Johnston for its employees is treated as a direct manufacturing labour cost. X Required Prepare a production budget and direct manufacturing labour budget for the Johnston Company by month and for the first quarter of 2022. The direct manufacturing labour budget should include labour-hours and show the details for each labour cost category.Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labour time needed for the three months in the quarter. Then calculate the values for the quarter. Finish by preparing the bottom portion of the schedule for the direct manufacturing labour by month, then quarter. {Round your answers to the nearest whole number.) Johnston Company Budget for Production and Direct Manufacturing Labour For the Quarter Ended March 31, 2022 January February March Quarter Budgeted sales (units) Add target ending finished goods inventory (units) Total requirements (units) Deduct beginning nished goods inventory (units) Units to be produced Direct manufacturing labour-hours per unit Total hours of direct manufacturing labour time needed Direct manufacturing labour costs: Wages Pension contributions Workers' compensation insurance Employee medical insurance Employment insurance (e mployers share) Total direct manufacturing labour costs